Vitalik Buterin Proposes Accelerating Ethereum Transactions

Ethereum co-founder Vitalik Buterin has put forward new methods to speed up transactions on the Ethereum blockchain. Historically, Ethereum has not been the fastest blockchain, but after the merge (transition to proof-of-stake), transaction times have reduced to 5-20 seconds. However, other blockchains still outpace Ethereum in terms of speed.

Now, Buterin proposes a change called “single-slot finality.” Currently, Ethereum’s Gasper consensus mechanism takes approximately 12.8 minutes to finalize transactions.

With single-slot finality, this process is simplified, significantly reducing waiting times. “12.8 minutes is too long; no one wants to wait that long for a transaction to complete,” says Vitalik Buterin. In doing so, he indirectly targets Bitcoin, as Bitcoin transactions require at least 10 minutes of waiting time.

Expanding Ethereum on Layer 2 Buterin’s new argument also focuses on Ethereum’s Layer-2 solutions. Currently, they achieve faster processing by using smaller validator groups.

According to Buterin, this allows Ethereum’s main blockchain to focus on its core functions: stability, censorship resistance, and security. “The role of Layer-2 solutions is to provide a better user experience, making transactions faster and adaptable to different needs,” says Buterin.

Speeding up Ethereum is crucial for it to become a significant part of the global financial system. If critical financial assets run on Ethereum, preventing transaction costs from suddenly rising to $20-30 is essential.

However, there is still a risk of congestion on the blockchain. If everyone wants to sell an asset simultaneously, it should still be possible. Otherwise, a strange panic could ensue, where people must significantly increase transaction costs to be the first to sell their assets.

Sentiment: Positive